Companies House costs increasing by up to 368%

Significant increase in costs across 25 different filing fees sees contractors squeezed further

Fees charged by Companies House for routine paperwork submissions are increasing as a result of new legislation – with some increasing by as much as 368%.

Introduced by the Economic Crime and Corporate Transparency Act 2023 – and effective 1st May – the new charges mean limited company contractors are facing yet another hike to the cost of doing business.

The new legislation “introduces the biggest changes to Companies House since corporate registrations were established in 1844”, according to gov.uk.

Aimed at “improving corporate transparency” and “making sure the UK is one of the best places in the world to start and grow a business”, the changes coincide with a Spring Budget which offered little for contractors. 

Increases across 25 different charges

Companies House has explained that its “fees are set on a cost-recovery basis”. This means the fees it charges “must cover the cost of services” it delivers. 

While Companies House also says that it does not make a profit, the extent of the price hikes – increases of up 386%, according to Contractor UK – may raise questions about those claims.

In total, 25 different fees will increase from the 1st May. As reported by Elite Business Magazine, these will include both annual and one-off fees:

• Confirmation Statements, which must be filed once every 12 months, are increasing from £13 to £34 (for digital submission); representing an increase of almost 300%. 
• Change of Name costs, which are increasing from £8 to £20.
• Incorporation costs. Online or digital incorporations are increasing from £12 to £50.
• Administrative Restoration – the process of reinstating a dissolved company – will go from £100 to £468, an increase of 368%.

The new fees being charged by Companies House are available here, but not in comparison with the current fees (which are available here until 1st May). 

In addition to the price hikes, limited company contractors must also include additional information when filing Confirmation Statements and the Change of Registered Office Address forms. These filing requirements are also a result of the new legislation and have been in place since 4th March this year. 

Similarly, accountants – or other ‘authorised agents’ who file paperwork with Companies House – will also face new requirements under the legislation, which may lead to price increases for services.

Changes could ‘pose challenges’ for small businesses

Reporting on the changes, Elite Business Magazine suggested that while the increases “may seem large”, the move will “ultimately enable Companies House to deliver a better service”.

This includes better record keeping, which will give businesses and individuals “access to accurate information on the register”. Additionally, “businesses will be more equipped to check the credibility of suppliers and other companies they trade with”.

However, the publication also admits that “the fee adjustments may pose initial challenges” and may place a greater administrative burden on small businesses, who “must maintain accurate and up-to-date information about business activities and strengthen their anti-money laundering practices”.